WOODCLIFF LAKE, NJ-Advance at Woodcliff Lake LLC, has picked up long-term, fixed-rate construction and permanent financing of $45 million for its Advance at Woodcliff Lake office building. The affiliate of Advance Realty Group currently has the site under construction.
As reported by GlobeSt.com, the Bedminster-based Advance is doing the project as a build-to-suit to house the US headquarters of Eisai Inc., a Japanese pharmaceutical company. In a deal that was announced in the summer of 2005, Eisai has preleased the entire 210,000-sf facility and will relocate from its existing space in Teaneck.
"This was a one-stop loan process consisting of a fixed-rate construction and permanent loan provided with one lender and rate-locked for the full term at application," says Martin Klebanoff, senior vice president and co-managing director of the Parsippany office of NorthMarq Capital Inc. Klebanoff arranged the deal for Advance Realty and secured the funding from a major life insurance company, which was not identified.
"This was a terrific piece of debt for the borrower as it mitigates all interest rate risk by fixing the rate during the construction loan, as well as for the permanent loan, while the building is being construction," Klebanoff explains. "The lender administers the construction loan and then converts to a long-term, fixed-rate permanent when the tenant takes occupancy."
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